Correlation Between Incar Financial and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Incar Financial and KT Submarine at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Incar Financial and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and KT Submarine Telecom, you can compare the effects of market volatilities on Incar Financial and KT Submarine and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Incar Financial with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and KT Submarine.
Diversification Opportunities for Incar Financial and KT Submarine
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Incar and 060370 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and KT Submarine Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine Telecom and Incar Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Incar Financial Service are associated (or correlated) with KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine Telecom has no effect on the direction of Incar Financial i.e., Incar Financial and KT Submarine go up and down completely randomly.
Pair Corralation between Incar Financial and KT Submarine
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 0.79 times more return on investment than KT Submarine. However, Incar Financial Service is 1.27 times less risky than KT Submarine. It trades about 0.1 of its potential returns per unit of risk. KT Submarine Telecom is currently generating about 0.05 per unit of risk. If you would invest 301,488 in Incar Financial Service on October 16, 2024 and sell it today you would earn a total of 242,512 from holding Incar Financial Service or generate 80.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.88% |
| Values | Daily Returns |
Incar Financial Service vs. KT Submarine Telecom
Performance |
| Timeline |
| Incar Financial Service |
| KT Submarine Telecom |
Incar Financial and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and KT Submarine
The main advantage of trading using opposite Incar Financial and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, KT Submarine can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KT Submarine will offset losses from the drop in KT Submarine's long position.| Incar Financial vs. Sung Bo Chemicals | Incar Financial vs. Seers Technology | Incar Financial vs. HB Technology TD | Incar Financial vs. Bosung Power Technology |
| KT Submarine vs. Hyundai Home Shopping | KT Submarine vs. Narae Nanotech Corp | KT Submarine vs. Orbitech Co | KT Submarine vs. Eagle Veterinary Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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